Held that, the definition of interest in S. 2(28A) uses the expression “service fee or other charge”, the loan processing fee cannot qualify as “interest” within the meaning of S. 2(28A). PCIT is not justified in initiating revision proceedings on the ground that the AO has not made disallowance under s. 40(a)(ia) in respect of the loan processing fee paid by the assessee without deducting TDS. Revision order was quashed. (AY. 2014-15)
Badrunisha (Smt.) v. ACIT (2022) 220 TTJ 983 / 220 DTR 338 (Jodhpur)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Interest-loan processing fees are not in respect of money borrowed or debt incurred, such loan processing fees cannot qualify as “interest” as defined u/s 2(28A) of the Act-Revision is not valid [S. 2(28A)) 40(a)(ia)]